In Germany, several hundred thousand loan applications are rejected by banks every year, because the income is too low. Applicants have only forgotten the truth, to state their income completely.
Too low income causes loan rejection!
To avoid this, please read this page carefully before you apply for a loan.
What is valid at the bank as income?
Unfortunately, there is no universally valid answer to this question. There are quite conservative banks, such as the Volksbank, savings banks, but also the DKB, which only accept supplemential salaries or pension payments possibly by federal payments, such as “Bafög” (federal training assistance act) or parential benefits.
On the other hand, there are loan intermediaries, like Smava and Bon-Kredit, that register all imaginable income and look for a possibility lateron, on how to include it positively into the loan application.
Sum up all income that you actually receive!
At best, you determine the totality of your income by yourself. The single amounts will then be stated sumed up, if not queried separately at a loan provider.
Feel free to use our checklist to not forget any income:
- salary, sometimes also called: wage, pay, reward
- federal payments
- unemployment benefits
- Hartz4, also as an additional payment, if the salary is too low (increase)
- Bafög (federal training assistance act)
- parential benefits (federal)
- raising allowance (country)
- care allowance (Bavaria)
- child support
- housing benefit
- sickness benefit
- nursing allowance
- maintenance, e.g. after a divorce
- income from rental and leasing
- income from agriculture and forestry
- income as capital income (interest, dividends)
- income from licences
- income from photovoltaic
- income from clandestine employment
This subject is considered not politically correct and somehow no bank wants to be linked with it officially. However, fact is that more than one million people in Germany have additional income that they receive undeclared. So, why shouldn’t it be stated in the loan application, if it improves the creditworthiness? A proof can be provided through bank statements.
- income from abroad (often not accepted)
Questions about the determination and statement of income in loan applications?
Please ask them through the comments box at the end of this page.
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